Are Exempt Employees Eligible for Comp Time?

by Jackie Lohrey; Updated September 26, 2017
Time is money

If you qualify as an exempt employee according to your job duties and salary, your eligibility for comp time depends entirely on your employer. Although the federal Fair Labor Standards Act allows private sector employers to offer exempt employees compensatory time off in lieu of overtime pay, your employer is under no obligation to compensate you for extra hours worked.

FLSA Comp Time Rules

FLSA wage and overtime rules do not protect exempt employees. Although your employer must pay you a guaranteed weekly salary of at least $455 with no deductions for time-off, there is no requirement to pay for extra hours worked. Section 541.604 of the FLSA says that an employer may offer overtime compensation -- including comp time -- to exempt employees, but the choice is voluntary. As long as your employer treats everyone fairly, she can implement a comp time policy or choose not to offer comp time to exempt employees.

About the Author

Based in Green Bay, Wisc., Jackie Lohrey has been writing professionally since 2009. In addition to writing web content and training manuals for small business clients and nonprofit organizations, including ERA Realtors and the Bay Area Humane Society, Lohrey also works as a finance data analyst for a global business outsourcing company.

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